October 15, 2013

 Insurance Fraud - Top Legislative Priority in 2014?

A recent federal lawsuit filed on Monday by Illinois Farmers Insurance Company and two of its affiliates accuses 46 chiropractors of defrauding the state's auto insurance industry.  The case contends that chiropractors received illegal kickbacks for ordering MRIs with a specific Twin Cities diagnostic imaging company.   This highlights the climate of no-fault abuses occurring in our state such as insurance schemes, kickbacks and staged accidents that the Insurance Federation of Minnesota claims is plaguing the auto insurance market in Minnesota.  As we know, these abuses drive up the cost of no-fault insurance in the state which is directly passed on to your policyholders.


Here is a link to a recent StarTribune story on the lawsuit:




In related news, a special task force of the Senate Commerce Committee has been created and has already held a series of meetings around the state to explore legislative attempts to reduce insurance fraud of all kinds in Minnesota.  The Insurance Fraud Prevention Working Group is chaired by Senators Vicki Jensen (D-Owatonna) and Paul Gazelka (R-Baxter).   Both are licensed active insurance agents.  The Working Group has scheduled monthly meetings until the state legislature reconvenes in February.  At that time, fraud prevention legislation will likely be introduced.  The MIIAB expects to strongly support this legislation when it is presented to the legislature and work with the Insurance Federation of Minnesota to gain its passage.   


Dominic Sposeto

MIIA Lobbyist


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